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The benchmarks are bottom-up cost estimates of all major inputs to typical PV and energy storage system configurations and installation practices. Bottom-up costs are based on national averages and do not necessarily represent typical costs in all local markets.
The total cost over the service life of the system is amortized to give a levelized cost per year. In the PV System Cost Model (PVSCM), the owner's overnight capital expense (cash cost) for an installed PV system is divided into eight categories, which are the same for the utility-scale, commercial, and residential PV market segments:
Our operations and maintenance (O&M) analysis breaks costs into various categories and provides total annualized O&M costs. The MSP results for PV systems (in units of 2022 real USD/kWdc/yr) are $28.78 (residential), $39.83 (community solar), and $16.12 (utility-scale).
These benchmarks help measure progress toward goals for reducing solar electricity costs and guide SETO research and development programs. Read more to find out how these cost benchmarks are modeled and download the data and cost modeling program below.
In 2025, the cost of an individual solar panel in Australia ranges from $80 to over $300 per panel, depending on brand and wattage. Budget panels from Jinko, Trina, or Seraphim retail for under $150 each, while premium modules like SunPower or REC cost $250–$300+. A typical home system uses 14–28 panels.
Maintenance: Although solar farms have lower maintenance costs than traditional power plants, periodic cleaning and repairs are essential to ensure maximum efficiency. According to recent estimates, the cost of setting up a solar farm in Australia can range between $1 million to $1.5 million per megawatt (MW) of installed capacity.
While the initial investment and land-use issues present challenges, the long-term environmental and economic benefits are undeniable. As solar technology costs continue to decline, and with government support, solar farms will become an even more viable and essential component of Australia's energy landscape.
The Cost Spectrum: The choice between a value-oriented “budget” panel and a high-performance “premium” panel can have a substantial impact on the upfront cost. A budget-friendly panel from a reputable manufacturer like Jinko might cost around $130 per unit. In contrast, a premium panel from a brand like SunPower could easily exceed $290 per unit.
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